Ask Question
13 June, 09:49

Poundcake Company owns 10,000 shares (10% of total shares) of Joshua, Inc. Joshua declares and pays a cash dividend of $0.50 per share. Poundcake first records dividends when cash is received. Upon receipt of the cash dividend, what entry should Poundcake make?

+2
Answers (1)
  1. 13 June, 09:57
    0
    Journal Entries

    On declaration of dividend

    Dividend Receivable (10000*.5) 5000

    Dividend Income 5000

    To record the Dividend Income on declaration date

    On dividend Receipt Date

    Cash 5000

    Dividend Receivable 5000

    To record the receipt Dividend in ledgers.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Poundcake Company owns 10,000 shares (10% of total shares) of Joshua, Inc. Joshua declares and pays a cash dividend of $0.50 per share. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers